πŸ‡ΊπŸ‡Έ

France rejects U.S. proposal on international tax reform

Credit: Reuters Studio
Published on December 7, 2019 - Duration: 01:23s

France rejects U.S. proposal on international tax reform

France rejects a U.S. idea for companies to opt out of a proposed international tax reform, Finance Minister Bruno Le Maire said on Friday, urging Washington to negotiate in good faith.

Ciara Lee reports

Advertisement

France rejects U.S. proposal on international tax reform

France and the U.S. were already on a collision course over taxes.

With Washington threatening heavy duties on imports of champagne, cheeses and luxury handbags in retaliation for a French digital levy.

Now the frictions are being felt as the Paris-based OECD makes its own plans for tax reforms. In October, it suggested giving governments more power to tax big multinationals in the country where the end-client is.

The proposals are part of the biggest rewrite of international tax rules since the 1920s.

They would replace the French digital levy if they are ultimately adopted.

But now Washington has suggested companies could opt out of the reform.

The U.S. Treasury Secretary raised questions about the proposals in a letter made public on Wednesday.

On Friday (December 6), French finance Minister Bruno Le Maire made a plea to Washington.

(SOUNDBITE) (French) FRENCH FINANCE MINISTER, BRUNO LE MAIRE, SAYING: "I'm calling on our American friends, as I have done with the U.S. Treasury Secretary Steven Mnuchin with whom I spoke on the phone on Wednesday, to resume negotiations.

They're ready, according to their words, but they have to resume it in good faith, meaning not on an optional basis." The OECD is aiming to update taxes globally for the digital era.

Le Maire added that if its efforts fall through, EU countries should revive talks for a European digital tax.

You are here

You might like